A CONTROVERSIAL formula which has "cheated" the north west out of government cash for more than 20 years took its name from Manchester peer Lord Barnet.

While other politicians have statues or buildings named after them, his reward was the notorious Barnet Formula. And now, admits the former MP, he's had enough of it.

"It is an embarrassment to have my name attached to so unfair a system, especially as when I introduced it, it was going to last only a year," said Lord Barnet.

His plea to the government to drop his name from it caused laughter and left government spokesman Lord McIntosh in a quandary.

"I would be very willing never to use the phrase Barnet Formula again but you asked me a question about it. I will undertake that unless you or anyone else prompts me to do so I will never use the words Barnet Formula again," said Lord McIntosh.

System

Lord Barnet, 81, is a former vice-chairman of the BBC but it was as chief secretary to the Treasury in the 1970s that he drew up the famous formula.

"Being chief secretary wasn't the easiest of jobs and I devised a system that would save me a little trouble and I hived off Scotland and Wales," recalls Lord Barnet.

But he agrees with critics of his formula that it is now grossly unfair: "Income per head in the north west and north east is much lower than in Scotland yet under the formula Scotland gets around £1,000 a head more in public spending than the average in England."

The former Manchester schoolboy says at the time, it was not described as a formula because it was based on population, not on real need and he thought it would last only 12 months.

"But it was kept going for 18 years by Margaret Thatcher and John Major and it became a formula during that time," added Lord Barnet.

"Now the present government won't change it for fear of upsetting the Scots."